Congressman Américo Gonza Castillo, member of Peru Libre, is the main author of a bill that proposes to allow the withdrawal of funds contributed to the administrators of pension funds (AFP) for an amount of up to four (4) tax units (UIT), in order to promote the economy national.
The foundation of this proposal is that the Peruvian economy has not yet exceeded the contraction phase (a situation prior to the pandemic), since inflation compared to the previous year has not varied. This has generated as main challenges the increase in cost of living, price increase, increased fuel rates and domestic and public services rates.
Free Peru: What else does the bill say?
The co-authors of the bill No. 10153/2024-CR for the Retirement of up to S/21,400 They are Flavio Cruz Mamani, Isaac Mita Alanoca, María Elizabeth Taipe Coronado, Waldemar José Cerrón Rojas, and Kelly Roxana Portalatino Ávalos.
The document among its foundations mentions Economy growth in 2023affected by social protests, climatic anomalies high inflation and low confidence of the business to invest and hire new staff and/or raise salary levels. Likewise, the obvious aspects of crime that affect the economy are mentioned. According to the Chamber of Commerce of Lima (CCL), the cost associated with citizen insecurity amounts to more than S/35,000 million.
On the other hand, they need exogenous factors that could put Peru in an unwanted situation as a primary mineral country. They highlight a poorly focused fiscal policy, the rise in consumer prices in 2024 – pointing out that last July, of the 586 products that make up the family basket, 267 increased price – and, finally, the increase of S/3.20 in The price of the 10 kilos gas ball in Lima.
AFP retreat: What do experts say?
In contrast, and according to Juan Valera, labor lawyer, the new bill is contradictory, since changes have recently implemented changes in the pension system legislation with the aim of guaranteeing a worthy pension for workers. In addition, the regulation of this reform remains pending for this year, which makes the insistence on approveing new withdrawals even more questionable.
He also warned that constant retreats have led many people to stay without pension funds, leaving them without financial support for retirement.
“From the pandemic to the present, multiple withdrawals have been approved of up to four UITS, generating a long -term problem for those who have exhausted their background and no longer have a stable job,” Valera told the Republic. “In these cases, citizens can be forced to resort to underemployment or informal loans to access cash, which aggravates their economic situation.”
Another critical point is that the measure does not have a significant impact on the formal economy. According to the labor lawyer, 77% of the country is informal, so not everyone has AFP, so the proposal would not boost the economy effectively.
The discussion about the sustainability of the pension system remains open. While Congress evaluates this proposal, the debate on whether these retreats persists represent an immediate solution for citizens or if, in the long term, they generate an even greater problem for their economic security.
Source: Larepublica
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